HERBALIFE SURVEY REVEALS WILLINGNESS TO INCREASE HEALTH & WELLNESS SPENDING

APAC: Herbalife’s Asia-Pacific Health Priority Survey of 5,504 consumers aged 18-78 years across 11 APAC markets reveals that 77% became more health-conscious, owing to the pandemic. Some 72% are willing to increase their spending related to health & wellness, particularly in Vietnam (95%), the Philippines (90%), Indonesia (86%) and Taiwan (85%).

Respondents shared how they would like to use their increased expenditure to make healthier food choices (65%), purchase / consume dietary supplements (52%), go for regular health check-ups (48%), engage experts for advice (28%), and seek mental health consultation (25%). Improved overall health (51%), better sleep (46%) and enhanced immunity (46%) are the Top 3 health goals, followed by improving eating habits (42%) and mental health (40%). 

Nicholas Hall Writes: I haven’t seen the Herbalife questionnaire submitted to more than 5,000 consumers in Asia, but at face value the results are both predictable and also provide a simple script for CHC growth in the region and globally. Consumers told Herbalife that they are more health conscious since the pandemic and willing to spend more on improving their health. The direction this would take favours self-care very much, whether it be healthy eating or purchasing dietary supplements, with the role of HCPs relatively unimportant. Improving sleep and greater immunity were the most desired outcomes.

As I’ve written before, sleep comes up time and time again, and we have some impressive growth brands in the world, such as P&G’s ZzzQuil, but we do not yet have the ideal product, even in the pharma market, in the sense of being effective but not addictive. The ideal sleep remedy sends you to sleep; keeps you asleep; overcomes nocturia, the biggest source of waking up in the night; and ensures that when you do wake up you feel refreshed and can get on with your day. Whoever brings a brand like this to market will have a licence to print money.

Immunity is another matter and we have some evidence from the recent past that shows how this plays out. Consumers in the first year of the pandemic spent some of their disposable income on multivitamins and other general immunity products, but not on antiviral sprays such as ColdZyme and Vicks First Defence. As I’ve said repeatedly, if brands like these cannot succeed during a pandemic when can they? And immune supplements like Sambucol, well known to be a favourite brand of mine, had stunning growth at the beginning of Covid-19, but then evened out as the pandemic ran its course. In the rush to bank innovation mega-profits, the company that cracks the code on immunity in terms of product, benefits and communications will stand just behind the sleep-aid entrepreneur in the queue.

Nicholas will explore the challenges and opportunities mental health and wellness pose for the CHC industry, as well as other crucial topics in his upcoming signature New Paradigms report. To explore full coverage, pre-order your copy at a discounted rate, or to find out more about optional add-on presentations and quarterly updates, please contact melissa.lee@NicholasHall.com. 

P&G says B aware of nerve health

P&G, the maker of neuropathic pain reliever Neurobion, commemorated Nerve Health Awareness Week 2023 for the third consecutive year by announcing its Ab Feel Karega India campaign. The aim is to raise awareness and maximise conversations around nerve health, particularly in rural and semi-urban areas. To help emphasise the important role of vitamins B1, B6 & B12, on-ground activities will shed light on how to improve nerve health and the importance of early diagnosis, in collaboration with pharmacists, physicians, medical and healthcare organisations.

Inspired by symptoms such as numbness and tingling felt by those suffering from vitamin B deficiency, the campaign will be further leveraged through a TVC film accentuating how sufferers are unable to feel the same joy when going about routine activities, negatively impacting their quality of life and emotional wellbeing. The campaign also includes online and interactive offline activations.

Nicholas Hall Writes: It’s fascinating to see the attention being given to vitamin B complex as a pain reliever, mobility enhancer and calming agent. Brands like Neurobion from Procter & Gamble and Alinamin (spun off by Takeda and now owned by Blackstone) have forged a new sub-category in Asia that is pioneering market growth in North America with brands like Nervive (P&G).

Those of you who have heard me speak on the subject of innovation know that I’m dismissive of the quantity vs quality approach. But the good work of companies like P&G is creating profitable new segments in markets like sleep and nerve health. Long may this continue!

Celebrate the best marketing campaigns from the region during the presentation of our upcoming Asia-Pacific CHC Marketing Award, taking place at Nicholas Hall’s Asia-Pacific CHC Conference. For more information about entry criteria, please contact elizabeth.bernos@NicholasHall.com.

Mental health drive needed in France

Consumer attitudes related to mental health and emotional wellbeing are expected to continue to drive the need for innovation to improve mood and reduce stress, according to ingredients and supplement manufacturer Nexira Health. An Innova Market Insights report cited by the company reveals that 53% of global consumers have taken action to improve their physical wellbeing, while 44% have acted to improve their mental and emotional wellbeing.

Nexira also noted that supplement launches over the past five years have increased by 26%; after immune health, the second most launched claim is brain-mood health (+25%). To emphasise wellbeing and mood health in 2023, Nexira is highlighting Serenzo, a supplement ingredient based on sweet orange essential oil formulated with acacia gum designed specifically for mental and emotional wellbeing. In a 12-week consumer study, Serenzo supplementation reduced subjective feelings of stress by 50%, significantly improved mental load and appeared to boost mood and emotional wellbeing. 

^{Nexira’s new targeted branding for its VMS range}

Nicholas Hall Writes: Isn’t it strange how the pandemic has changed public perception of consumer healthcare? Perhaps it was to be expected that consumers would move away from the previously unstoppable prevention trend and spend more of their disposable income on treatments with tangible benefits. But who could have predicted that in the search for immunity, consumers would be more attracted to general products like vitamin C and multivitamins than more specific brands. The relative failure of antiviral products like ColdZyme is a real mystery to me. If these brands cannot succeed during the worst pandemic the world has experienced in the hundred years since the Spanish flu, when can they? On the other hand, consumers have reached out directly to OTCs and supplements that improve the quality of sleep and reduce stress. This will put a massive premium on the price that potential acquirers will have to pay for mega-successful brands like Prevagen and Natrol.

With these growing lifestyle niches, the market seems even more wide open to new entrants. Nestlé Health Science and Unilever have made big inroads into the VMS sector, with particular success in e-Commerce, which accounts for 40-50% of their health & wellbeing businesses. It seems that Big Tobacco is also circling and may look to dig deeper in attractive adjacent categories such as CBD; and I am fascinated by the news story that the packaged fruits marketer, Dole, is keen to reposition itself after 170 years as primarily a purpose-led health & wellness company.

KEY FOOD, DRINK & SUPPLEMENT TRENDS FOR 2023

Dutch-based FrieslandCampina Ingredients has detailed five key trends that will drive the evolution of food, drink & supplement industries in 2023:

• Building trust for planet-first nutrition The health of the planet looks set to continue as a top priority for consumers but 38% do not trust companies’ honesty about their environmental impact. However, 83% are more likely to trust 3rd-party verified sustainability claims 

• Resilience & the power of positive nutrition As the world adjusts to post-Covid life and the cost-of-living crisis, stressed consumers are seeking a sense of balance to build resilience. Many are focusing on beneficial foods, drinks & supplements, rather than removing less nutritious foods, so fortified products that satisfy body & mind will be high on the agenda

• Alternative proteins find their own feet As plant-based becomes more mainstream, consumers increasingly expect high-quality, highly nutritional products that go beyond recreating animal-based applications. Emerging technologies such as precision fermentation are opening up new opportunities for brands, but mastering taste and texture remains paramount

• Going for gut health With rising awareness of the gut microbiome’s role in supporting improved mental health, stress and sleep, brands can attract consumer attention by creating accessible self-care moments. Thanks to ingredient innovations, unique and trending formats can be created, such as teas, shots and fortified gummies using ingredients such as prebiotics

• The era of active ageing The global population is now 8bn, including a growing number of elderly individuals. The emphasis is shifting from “healthy” to “active” ageing, with older adults focused on getting the most out of life. This offers opportunities for brands to create solutions with products that support long-term strength, balance & mobility

^{Source: FrieslandCampina Ingredients 2023}

Nicholas Hall Writes: With inflation by some accounts expected to halve this year, that could mean more disposable income available for important commodities like OTCs, which may ease some of the pressure we have forecast in recent weeks. Of course, our industry will experience very strong headwinds, so there is no easy path to success, and it seems to me that the low-hanging fruit has long since been blown off the trees. But perhaps we can be a scintilla more optimistic, especially as the initial sales trends from 2023 are positive, although I continue to believe that the market will weaken as the year progresses. 

As I’ve said many times, macro and micro factors affect the generality of the market, but individual countries, categories and brands will continue to do well if marketers adopt innovative new strategies that reflect the latest consumer trends. I was particularly interested in FrieslandCampina’s findings about sustainability, which confirms that this will be a significant factor in the forward movement of consumer health in the next few years. Previously we had looked upon sustainability as inevitable, but not a claimable advantage. Now I’m beginning to think that, handled correctly, it could be a huge benefit for a company that knows which buttons to press.

Take a look at the latest CHC ingredient trends with the 2023 edition of Innovation in CHC report, coming soon! Drawn from CHC New Products Tracker, this report showcases 100 key innovations from 2022, reviewing major delivery format and ingredient trends and reviews innovation by region and country. For more information, or to purchase your copy, please contact melissa.lee@NicholasHall.com.

CRN HIGHLIGHTS SAVINGS FROM SUPPLEMENTS USE

The CRN Foundation’s Supplement to Savings report identified up to US$17.7bn in annual net savings between 2022-30 from the use of specific dietary supplements by at-risk target populations most susceptible to coronary artery disease (CAD). Throughout February, American Heart Month, CRN will amplify the potential of dietary supplements to reduce the health impacts and healthcare costs of CAD. The chapters on CAD focus on four supplement regimens: 

• Average annual cost savings from the widespread daily use of preventative amounts of omega-3 fatty acids EPA+DHA could be US$4.47bn 
• Regular use of magnesium by specific at-risk populations amounts to average healthcare cost savings of US$2.32bn per year 
• Regular use of vitamin K2 by specific populations could generate estimated annual cost savings of US$9.48bn 
• The average cost savings from increased utilisation of soluble fibre for heart-health effects is US$1.47bn per year 

^{Source: CRN Foundation}

Nicholas Hall Writes: We talk a lot about the ability of the CHC industry to reduce the overall cost of public health as well as improving access, but it’s always good to see hard figures with which we can agree or disagree. Even if these estimates are too high – which I’m not saying is the case – a saving of up to US$18bn from coronary artery disease alone, and an even more important saving of lives, are to be greatly desired. To quote Steve Mister, the CRN’s President & CEO: “Today, most of our healthcare resources are spent after people are already afflicted with an ailment. We hope the broader medical community will take notice and evaluate how supplements can enhance nutrition and improve the overall health of their patients.”

I like Steve Mister’s terrier-like defence of dietary supplements, which we witnessed a second time this week when he (rightly) criticised the FDA for its unwillingness to take responsibility for regulating CBD. It is one thing to say that existing regulations cannot provide a pathway for CBD, although one wonders why it took four years to reach this conclusion, but where then is the pathway? Unless the FDA takes hold of this emerging category, it will continue to display all the characteristics of the Wild West, when we are seeking to avoid a “Gunflight at the CBD Corral”. And until firm but fair regulations are put in place, we are unlikely to attract major consumer players to this sector.

Monitor the latest launches across VMS with our dedicated innovation benchmarking tool, CHC New Products Tracker, which features almost 40,000 launches, all graded with a star rating. Subcategories such as CBD, eye health, omega-3 and various herbal supplements are tracked, plus many others. To find out more, or to set up a demo, please contact david.redford@NicholasHall.com.

H&B REPORT: WOMEN’S HEALTH A TOP WELLNESS TREND IN 2023

According to Holland & Barrett’s (LetterOne) Wellness Trends Report 2023, areas of particular interest to consumers this year will include:

• Women’s wellness – a big business in 2022 – will ramp up even further, with personalised solutions and FemTech founders continuing to help lead the revolution on breaking down taboos around menopause, menstrual health, fertility and more

• Wellness tech gets personal. From patches tracking dietary biomarkers to carbon levels in the breath determining metabolic function, the future is all about using health data for optimum health. Health tech innovation is also becoming more focused on key target groups, such as those suffering from, or at risk of, chronic conditions

• Sleep As well as vitamin D and magnesium, newly-trending ingredients include glycine, spearmint and plant polyphenols, EGCG and l-theanine. Meanwhile, consumers are keeping orthosomnia — the worry about getting enough sleep — at bay with remedies containing lavender, chamomile and CBD. There will also be an increase in smart tech to synchronise circadian routines

• Ayurveda Ayurvedic remedies such as ashwagandha and curcumin, combined with scientific scrutiny, are experiencing a rise in popularity 

• Beauty from within Collagen’s status as a skin-smoothing beauty superhero is here to stay, but people are also starting to understand the broader benefits, and younger customers are using type 2 collagen supplements to keep their joints in optimal health

^{To read the full report, click here.} 

Nicholas Hall Writes: Last Wednesday we held the NHC Start of the Year Meeting at our Southend-on-Sea HQ. What a pleasure after three years to have 35 team members in the room and most of the rest of our global team dialing-in. One of our main objectives was to brainstorm a new Strategic Narrative for the CHC industry, which will drive our Global Trends roadshow after the new DB6 data is published in early April. And, of course, the Strategic Narrative will be at the heart of New Paradigms for CHC 2023, which we have just scoped and which will be published in July. As usual I will write almost every word of this completely revised 4th edition, supported by what I truly believe to be the biggest and best market analysis and creative solutions team in the CHC industry – 54 out of our total headcount of 65 plus numerous network partners, associates and freelancers.

And many of the overarching issues to be discussed in New Paradigms are illustrated in the latest edition of CHC.Newsflash: women’s health, MedTech and FemTech, lifestyle products, natural remedies, sustainability and China (reviewed at a time when Dr Nouriel Roubini warns us in his latest book, Megathreats, of the dangers of deglobalisation). And even before we publish the new report, I hope to meet as many of you as possible at our April conference in London, when we will give you a sneak peek of the new Strategic Narrative.

I will be joined on stage in London by speakers from PAGB, Haleon and Perrigo, plus other industry experts, for our 33rd European CHC Conference 19-21 April. Exploring The Future Resumed, you can review the full agenda or explore group booking options by contacting elizabeth.bernos@NicholasHall.com.

CRN 2022 survey: Vitamin D in high demand

To mark World Vitamin D Day (2nd November), CRN published initial findings from its 2022 Consumer Survey on Dietary Supplements, which was conducted (in collaboration with Ipsos) in August 2022 among 3,133 US adults aged 18+ years. This includes 2,342 who report consuming dietary supplements seasonally, occasionally or regularly. The survey highlighted the Top 5 single ingredient supplements (see chart below), while also indicating that more than half of consumers (52%) who take supplements report taking a specialty supplement, the most reported of which are omega-3s, probiotics, melatonin and fibre.

CRN states that many more people could experience enhanced quality of life, as well as healthcare cost savings, if they were to follow the dietary supplement regimens discussed in the CRN Foundation Supplements to Savings report. For example, if all US adults aged 50+ years took calcium 1,000mg and vitamin D 15mcg per day, the US healthcare system could save US$17.3bn and avoid 361,507 medical events on average per year from 2022–30. “A steadily growing body of clinical research shows investing in preventive care through supplementation helps Americans avoid chronic conditions. This strategy is what we call a no-brainer,” said CRN SVP Scientific & Regulatory Affairs Andrea Wong.

Nicholas Hall Writes: As CHC.Newsflash reported recently, overall supplement usage stands at 75% of the entire US population, an astonishingly high level. Multivitamins remains the top dietary supplement (taken by 70%) and reported consumption of immunity-boosting supplements – including vitamin D, vitamin C and zinc – remains steady vs last year. Immune health is a top reason for taking supplements (40%), second only to overall health & wellness (44%). Yet there is still room for more growth, which would benefit both individual consumers and our industry, and the healthcare system at large. According to CRN, the annual savings from wider usage of calcium and vitamin D could reach US$17bn.

This data joins a torrent of basically good news about consumer health that makes me think that we are at the beginning of a golden age for our industry, which is how I described our prospects when I gave the final presentation at the Ceuta London conference. We used to say that CHC was dependent on three main drivers of growth. It is true that the cough & cold market is once again boosting demand, but we now no longer rely on the Emerging Markets to the same extent, and Rx-to-OTC is virtually non-existent. No, it is the broader acceptance of self-care by the US and European population that is delivering the most impressive results this year.

In just over two weeks, you can log on to hear from Nicholas and industry experts during our Asia-Pacific e-Conference on 23 November! Topics on the agenda include the go-to-market model, self-care collaborations and sustainability through accessibility. For more information, or to register, please contact elizabeth.bernos@NicholasHall.com without delay.

CRN Survey: Branded ingredients favoured by VMS consumers

The Council for Responsible Nutrition has revealed initial findings from its 2022 Consumer Survey on Dietary Supplements. The survey was conducted online in August 2022 among 3,133 US adults aged 18+ years, including 2,342 who report consuming dietary supplements seasonally, occasionally or regularly.

Liz Cummings, our Regional VP North America, reports from CRN’s Now New Next conference: 

US dietary supplement use has reverted to the pre-pandemic level of 75%, with multivitamins remaining the favourite among users. A wealth of regulation, science, economic and consumer insights was unveiled over the 3-day conference, which will be shared in future NHC publications. However, with CHC Newsflash highlighting the dynamic activity related to ingredients suppliers such as DSM, Kerry and ChromaDex, we thought it was timely to share the following results from the CRN survey: 

• 71% of supplement users agree that they “find more confidence using supplements made with branded ingredients”

• 62% perceived that supplements with branded ingredients cost more because they are more effective and better quality, and men were more likely to say that branded ingredients work better

• 61% are willing to pay higher prices for branded ingredients. Adults aged under 55 years are willing to pay more for branded ingredients

^{Source: CRN / Ipsos}

Nicholas Hall Writes: It seems we are awash with consumer research that confirms the importance of self-care, especially with regards to immunity, even though demand is returning to pre-pandemic levels. In many respects, consumers seem ahead of marketers (let alone regulators) in how they respond to the mega-trends of the day: the pandemics, economic pressures and the energy crisis.

As I wrote last week: “I see a paradox in matching this consumer U&A data with the relative failure of specific immunity products such as antiviral nasal sprays … So why is it that consumers who fear Covid-19, and who subscribe to the concept of immunity, are content to rely on, say, a multivitamin the category grew by 13.5% globally in Year 1 of the pandemic — and not divert to specialist products? I am still searching for an answer.” Another paradox is that, while the top CHC players are reporting excellent sales and the global sales data for the 12 months to June 2022 which we reported in late September is at a record high, retailers and e-Commerce platforms are reporting reduced traffic. And there are signs that many consumers are trading down to smaller packs or cheaper generics and private labels, which you would expect in a recession.

One of the joys of working in consumer health is its resilience. It truly is a “must have” category, but it is in the detail where we will make or lose our reputations. It seems that we must switch focus from macro-trends to the micro and to understand better what makes everything tick rather than the size of the clock. So, expect more springs, wheels and cogs to be presented in the autumn and winter months ahead.

Immune health is the focus of our recent Immunity hot topic report. With profiles of key brands across categories including antivirals, vitamins, foods & beverages and probiotics for immunity, our report explores the latest trends & developments, predicting likely future scenarios. To order your copy, or for further details, contact melissa.lee@NicholasHall.com.

Covid’s lasting impact on immune health perception

A report from Dutch-based health ingredients company Nutrileads highlights the fundamental change in consumer views on immune health in the wake of Covid-19. The report draws on data gathered by FMCG Gurus from surveys conducted with 45,000 consumers in 15 countries from 2019-22. Not only is immune health significantly more important to consumers, it is also perceived to have a far-reaching impact on long-term health and wellbeing.

For two-thirds of participants, immune health is their top health priority over the next 12 months – more than any other issue including digestive and heart health. In addition, 78% view poor immune health as being easily susceptible to long-term health problems, while 40% are taking a proactive approach to their immunity, even if they believe they are in good health. Consumers also expect more from immune health products; the top three claims they want to see on the product label are scientifically validated and clinically-proven (82%), multifunctional benefits (79%) and helps lead a healthy lifestyle (79%).

Comment from Nutrileads CEO, Joana Carneiro: This research shows us that the experience of living with the pandemic is likely to have a lasting effect. Consumers are more knowledgeable about immune health and place more importance on improving it on the longer term.

Nicholas Hall Writes: “The latest research gives us a better understanding of consumer perception of immunity after 2.5 years of Covid, and the sustained interest in using dietary supplements. But I still see a paradox in matching this consumer U&A data with the relative failure of specific immunity products such as antiviral nasal sprays … So why is it that consumers who fear Covid-19, and who subscribe to the concept of immunity, are content to rely on, say, a multivitamin – the category grew by 13.5% globally in Year 1 of the pandemic – and not divert to specialist products? I am still searching for an answer.”

In just over a month, you can log on to hear from Nicholas and industry experts during our Asia-Pacific e-Conference on 23 November! Topics on the agenda include the go-to-market model, self-care collaborations and sustainability through accessibility. For more information, or to register, please contact elizabeth.bernos@NicholasHall.com.

Two Rx-to-OTC allergy switches approved by FDA

In a clear sign of a more favourable attitude to Rx-to-OTC switch, the US FDA last week approved two new allergy products for non-prescription use.

Lastacaft alcaftadine ophthalmic 0.25% solution (Allergan / AbbVie) is now available without a prescription online and in retail stores for individuals aged 2+ years with ocular allergies. As demonstrated in clinical studies, one drop works in as little as three minutes to provide relief from itchy eyes for up to 16 hours. Following the recent FDA Rx-to-OTC switch approval, the original patented prescription-strength formulation of Lastacaft is available in a 5ml multidose bottle containing a 60-day supply, as well as a twin pack with two 5ml multidose bottles.

Perrigo also received final approval last week from the FDA for the OTC use of Nasonex 24HR Allergy (mometasone furoate monohydrate 50mcg). This marks the first branded Rx-to-OTC switch for the company, which expects to begin offering the nasal spray later this year. Nasonex is a registered trademark of Organon and is used by Perrigo and its affiliates under licence.

Nicholas Hall’s Touchpoints: This development will no doubt lead to an increase in switch activity after House and Senate committee members cited concerns that “very few products in recent years have switched from prescription drugs to nonprescription drugs” and pointed out that the FDA is expected to “meet the goals of the Fall 2021 Unified Agenda and publish and subsequently finalise the proposed rule titled Nonprescription Drug Product with an Additional Condition for Nonprescription Use.”

The appropriations committees are also: “Concerned about dietary supplement products that are adulterated or misbranded, in particular with imported products. The agreement provides an increase of US$2mn in the FDA’s budget [US$6.1bn in total] to be used for inspections, as well as enforcement of the Dietary Supplement Health & Education Act of 1994”. My sense is that in the biggest market for both switch and dietary supplements, we could see a correction in the prevailing trend from treatment to prevention.

Take a look at the latest CHC innovations in our forthcoming 2022 edition of Innovation in CHC from CHC New Products Tracker. This report offers a look at Rx-to-OTC switch activity, as well as innovation by region, marketer and 20 individual countries. To pre-order your copy and save up to £1,350 with the pre-publication discount, or for further information on this report, please contact melissa.lee@NicholasHall.com.